NYSE$SRI

Stoneridge Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported second quarter results with sales of $266.8 million and a loss per share of $(0.11).

Stoneridge reported strong second-quarter results, exceeding expectations with sales of $266.8 million and adjusted sales of $262.4 million. The company drove significant margin improvement, with adjusted gross margin improving by 470 basis points and adjusted operating margin improving by 390 basis points relative to the first quarter. The company is guiding to the high end of previously provided adjusted sales, adjusted gross margin and adjusted operating margin ranges.

  • Sales of $266.8 million.
  • Adjusted sales of $262.4 million.
  • Gross profit of $60.5 million.
  • Adjusted gross profit of $60.9 million, representing 23.2% of adjusted sales.

Headline financials

Total Revenue

$267M

Previous: $221M+20.8%
EPS (adj)

-$0.05

Previous: -$0.29+82.8%
Capital Expenditures

-$5.35M

Previous: -$5.78M+7.4%
Free Cash Flow

-$8.34M

Previous: -$13.1M+36.4%
Net Income

-$2.99M

Previous: -$7.34M+59.2%
Operating Income

$4.33M

Previous: -$5.93M+173.1%
Gross Profit

$60.5M

Previous: $38.6M+56.9%
Cash & Equivalents

$34.7M

Previous: $40.7M-14.7%
Total Assets

$685M

Previous: $638M+7.4%
Stock-Based Comp

$1.2M

Previous: $1.74M-30.8%

Revenue & EPS history

Stoneridge · Revenue · Quarterly

$267M

Q2 2023+20.8%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Stoneridge · $272M total across 3 segments · Q2 2023

  • Electronics
    $164M+42.4%
  • Control Devices
    $93.1M+9.5%
  • Stoneridge Brazil
    $14.9M+12.0%

Forward guidance

The Company is expecting operating performance to be at the high end of the previously guided ranges for adjusted sales, adjusted gross margin and adjusted operating margin. The Company reaffirmed full-year adjusted earnings per share guidance of $(0.10) to $0.10, adjusted EBITDA guidance of $50.9 million to $58.4 million, or 5.3% - 5.9%, of adjusted sales and adjusted tax expense guidance of $3.0 million - $4.0 million.

Tailwinds

  • Expecting operating performance to be at the high end of the previously guided ranges for adjusted sales of $960.0 million to $990.0 million.
  • Expecting operating performance to be at the high end of the previously guided ranges for adjusted gross margin guidance of 20.5% to 21.25%.
  • Expecting operating performance to be at the high end of the previously guided ranges for adjusted operating margin guidance of 1.5% to 2.25%.
  • Reaffirming full-year adjusted earnings per share guidance of $(0.10) to $0.10.
  • Reaffirming adjusted EBITDA guidance of $50.9 million to $58.4 million, or 5.3% - 5.9%, of adjusted sales.

Headwinds

  • Year-to-date non-operating expenses of $4.0 million or $0.12 adjusted EPS.
  • Unfavorable non-operating expenses, including foreign currency and equity investment related expenses.
  • Reaffirming adjusted tax expense guidance of $3.0 million - $4.0 million.
  • Incremental non-operating expenses reduced adjusted EPS guidance by ~$0.12 in the first half of the year
  • Incremental non-operating expenses reduced adjusted EBITDA by $(4.0) million in the first half of the year

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.3%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-0.4%

Avg return

30 days after

56%

37 / 66 earnings

Positive

+20.7%

Q4 2024

Best reaction

-26.0%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.6%-3.9%+6.7%
Q4 2025-22.8%-26.5%-26.1%
Q3 2025-3.8%-4.5%-19.1%
Q2 2025+9.2%+2.4%+9.5%
Q1 2025+7.5%+13.7%+30.1%
Q4 2024+20.7%+27.4%+10.2%
Q3 2024-26.0%-26.0%-27.4%
Q2 2024+7.9%-7.4%-13.4%
Q1 2024-1.2%+6.1%+5.9%
Q4 2023-5.6%-10.7%-0.9%
Q3 2023+2.0%+0.7%+3.0%
Q2 2023+12.8%+17.5%+1.1%
Q1 2023-11.4%-13.6%-7.8%
Q4 2022-11.5%-15.7%-21.5%
Q3 2022+9.4%+18.7%+16.5%
Q2 2022-2.0%+1.1%-1.1%
Q1 2022+1.4%-11.7%+14.8%
Q4 2021+9.3%+11.2%+19.0%
Q3 2021-7.2%-6.6%+2.9%
Q2 2021-11.2%-7.8%-17.2%
Q1 2021+2.9%-1.7%-9.2%
Q4 2020+8.2%+10.8%+11.8%
Q3 2020+6.5%+1.1%+20.4%
Q2 2020-3.3%-3.5%-3.5%
Q1 2020-5.4%-5.9%+23.8%
Q4 2019-16.9%-22.2%-42.1%
Q3 2019-7.7%-9.5%-9.9%
Q2 2019-7.5%-7.2%-8.1%
Q1 2019-2.3%-2.4%-17.2%
Q4 2018+5.3%+7.0%+2.8%
Q3 2018+10.4%+12.2%+20.5%
Q2 2018+2.4%-7.7%-12.0%
Q1 2018+2.7%+5.7%+21.3%
Q4 2017+2.1%+5.5%+23.4%
Q3 2017-5.1%-2.7%-3.8%
Q2 2017+11.0%+11.1%+9.6%
Q1 2017-8.0%-9.7%-20.9%
Q4 2016+5.3%+4.2%+0.5%
Q3 2016-20.2%-20.1%-12.2%
Q2 2016-0.3%+1.0%+1.7%
Q1 2016+5.4%
Q4 2015+11.0%
Q3 2015+2.3%
Q2 2015+17.2%
Q1 2015-0.8%
Q4 2014+2.5%
Q3 2014+0.7%
Q2 2014-5.2%
Q1 2014-6.2%
Q4 2013+4.2%
Q3 2013-2.7%
Q2 2013+9.0%
Q1 2013+15.1%
Q4 2012+0.6%
Q3 2012+0.2%
Q4 2011+7.9%
Q2 2012+7.9%
Q1 2011-5.7%
Q1 2012+2.2%
Q4 2009+5.2%
Q3 2010+2.8%
Q3 2011+2.8%
Q2 2010-22.1%
Q2 2011-22.1%
Q4 2010-22.1%
Q1 2010+20.3%

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